House values appeared to hold their own, with houses sold last month at a median value of $295,119. While down 9.5 per cent from $326,000 in December, this was up 19 per cent from $248,000 in January 2012.

Institute chief executive Helen O'Sullivan said the slight drop in house prices and volumes from December was normal given the seasonal nature of the housing market.

The national median house price was $370,000, up 4.2 per cent compared with January 2012 but down 4.9 per cent from the record high set in December 2012.

Prices in Nelson and Marlborough rose by 4.6 per cent; up $15,000 last month compared with January 2012.

It took 40 days to sell in Nelson and Marlborough, up from 35 days in December and an improvement of 17 days compared with January 2012.

Ms O'Sullivan said the Nelson and Marlborough residential real estate market was performing well and continuing the trend that developed during 2012. "The Nelson [Marlborough] market remains competitive with a limited supply of listings and a growing number of buyers," Ms O'Sullivan said.